Problem $14-14$ WACC $($LO$4)$

Welling Inc. has a target debt$-$equity ratio of $0\mathrm{.}75.$ Its WACC is $9\mathrm{.}3\%,$ and the tax rate is $35\%.$

a$.$ If the company's cost of equity is $14\%,$ what is its pre$-$tax cost of debt? $($Do not round intermediate calculations. Round the final

answer to $2$ decimal places.$)$

Cost of debt

b$.$ If instead you know that the after$-$tax cost of debt is $6\mathrm{.}8\%,$ what is the cost of equity? $($Do not round intermediate calculations.

Round the final answer to $2$ decimal places.$)$